Several innovative breakthroughs with new technologies during the year helped boost Gome sales by 7.02 per cent.
“The group embraced the changes brought about by the internet by upholding a more positive spirit and keeping an open-minded and learning attitude,” Gome Electrical Appliances said in its annual results announcement.
“The eCommerce platform expanded its business around the globe… the physical stores of the group were the first to evolve the in-store product trading setting to a product application scenario, giving customers a consumption experience… and “Gome To Go”, comprising 100,000 micro-shops, created a fully penetrative network to achieve an unparalleled and seamless connection between the group and its customers.”
The Chinese electronics retailer built an improved supply chain system encompassing procurement, logistics, after-sales, information and big-data terminals.
During the year, the group had sales revenue of about RMB64,595 million (US$9.986 million), compared with RMB60,360 million for the previous year. Also, the group’s consolidated gross profit margin remained at a relatively high 17.81 per cent.
In July, the company moved to acquire Artway Development, which owns retail stores of the non-listed Gome Group, and its subsidiaries. This was completed on March 31, strengthening the group’s leading position in the retail market of electrical appliances and consumer electronic products in China.
Sales revenue from Beijing, Guangzhou, Shanghai and Shenzhen accounted for about 42 per cent of total revenue, compared to 44 per cent the previous year. This was because of increased revenue from the second-tier market.
Gome says its “New Scenario” aims to introduce fresh shopping experiences that integrate food, beverage and entertainment, and that the advantage of being able to experience products at the physical stores will attract more consumers. More New Scenario sites will be established this year.
Its new “Gome To Go” project aims to strengthen bonds with customers through its 100,000 sales persons with their respective social networks.
The micro-shops will foster internet penetration, seamlessly integrating online and offline channels, the group says. In the first half of this year it will expand its micro-shops, and will continue to vigorously promote the new marketing channel.